ECONOMICS
ECONOMIC GROWTH
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which one of these is a consequence of a recession?
|
|
Increase in inflation
|
|
|
Increase in employment
|
|
|
Decrease in income
|
|
|
Increase in Aggregate Supply
|
Explanation:
Detailed explanation-1: -Businesses large and small face declines in sales and profits in a recession. Their efforts to cut costs may include layoffs and cuts in capital spending, marketing, and research. Recessions may curb credit access, slow collections, and spur business bankruptcies.
Detailed explanation-2: -Economic damage Recessions result in higher unemployment, lower wages and incomes, and lost opportunities more generally.
Detailed explanation-3: -Economic output, employment, and consumer spending drop in a recession. Interest rates are also likely to decline as the central bank (such as the U.S. Federal Reserve Bank) cuts rates to support the economy.
There is 1 question to complete.